Looking for Yield?

If you’ve opened your investment account statement lately, you might have noticed that your money market fund is paying, well, next to nothing. So, do you put your cash reserves to work in an investment vehicle that pays a higher yield or should you be satisfied with your money market fund?

Vanguard has a couple of helpful tips in a recent article on their Web site. The most useful tip might be a quote by Don Bennyhoff, a senior investment analyst with Vanguard's Investment Strategy Group. He says, "For cash reserves, liquidity -- easy access to your funds at a known price -- should be paramount; yields should be secondary. If you're looking for baby steps, there are short-term bonds."